The article highlights a recent legislation change that has potential to drive investments from western markets to jurisdictions in Asia. Jurisdictions in Asia such as Singapore and Hong Kong have several advantages for offshore banking and offshore company formation, which are covered in the article.

1. Tax Directives Assist Investment Flow to Asia
http://www.healyconsultants.com/articles/investment-flow-to-asia.html
by Lawrence Smith
Changes to Channel Islands and Isle of Man banking laws will come into effect later
this year. From July 1 both jurisdictions will implement the European Union Savings
Tax directive, which requires EU member states to exchange information regarding
customers who have savings in one jurisdiction but live in another.
The significance of this announcement is the reflection of two growing trends in
banking: the trend of cross-border information sharing, and the global trails of assets
flowing into Asia and developing economies in reaction to this.
While these two jurisdictions are not actually part of the EU, they will implement this
directive and subsequently impact any EU resident that has a bank account in the
Channel Islands or Isle of Man. Any interest you’ve earned on your account will be
taxed and that tax will be withheld, according to this directive. In an effort to help
each EU member country retain its citizens’ taxes, these island jurisdictions are
eliminating the banking advantages they used to offer. Measures such as these
contribute to the influx of assets moving into Asian financial centres, such as Hong
Kong and Singapore.
European and Western economies have been cracking down on legal tax loopholes,
using EU and OECD influence to encourage information exchanges between
countries, and put blanket policies in place to curb tax evasion.
But these can be problematic solutions. There are legitimate reasons for account
holders to require privacy in banking. These are mainly focused on asset protection
and could involve people being deployed to work in countries with politically unstable
climates. Unfortunately, these policies that have been aimed at curbing wrong-doers,
have bought greater attention to the offshore banking, or offshore investment,
industry as a whole.
Jurisdictions in Asia are attracting a lot of interest from investors and entrepreneurs
looking for legitimate, and efficient, jurisdictions to invest. Singapore and Hong Kong
bank accounts are considered the best locations the world over for banking,
protecting assets and registering a company. In an era of heightening transparency,
capital assets will continue to flow to Asia.
Both of these Asian island nations are governed under regulations similar to Western
systems. As both jurisdictions are non-EU members, they are not affected by the
Savings Tax Directive. As a bonus, Asian investments flourish with opportunities in
developing economies, such as China and India, thanks to regional proximity.
The attraction of Singapore and Hong Kong is not only favourable investment
regulations but also exceptionally competitive economies and world-class
infrastructure suitable for operating an international company from. The growth in
Singapore company registration continues year-on-year. The latest figures from the
Singapore Statistics show a 36% increase in company registrations from February to

2. March of this year. While the dominant industries are wholesale trade and financial
services, these new Singapore start-ups are not focused on few industries but rather
spread across a range of sectors as evidenced by the split of new company
registrations. There has also been significant growth in Hong Kong company
formation with approximately 40% more private companies being registered in HK
during 2010 as compared to 2008.
Both jurisdictions offer entrepreneurs business friendly environments with world-
class infrastructure and attractive incentives for setting up a company. Both
jurisdictions consistently feature in international recognised surveys that compare
countries around the world based on aspects that contribute to business friendliness.
Increased scrutiny from the OECD and various tax authorities reduces the traditional
options for offshore bank accounts, or offshore investing. Offshore banking in
jurisdictions such as Singapore and Hong Kong are a legitimate strategy. Investors
and entrepreneurs looking for legitimate asset protection, low tax obligations and
stable political and economic environments continue to be attracted to such
jurisdictions for not only banking but also for setting up business operations.
Healy Consultants is a leading corporate services firm that assists entrepreneurs and investors with offshore
banking and company incorporation activities. Our firm provides a range of services including setting up an
offshore bank account. More information on company registration and international banking can be found
by visiting http://www.healyconsultants.com.